Chapter 24: Measuring The Cost Of Living Flashcards
1
Q
Inflation rate
A
The percentage change in the price index from the preceding period
2
Q
Producer price index
A
A measure of the cost of a basket of goods and services bought by firms
3
Q
Indexation
A
The automatic correction by law or contract of a dollar amount for the effects of inflation
4
Q
Nominal interest rate
A
The interest rate as usually reported without a correction for the effects of inflation
5
Q
Real interest rate
A
The interest rate corrected for the effects of inflation
6
Q
Consumer price index (cpi)
A
A measure of the overall cost of the goods and services bought by a typical consumer
